Summary information from the financial statements of two companies competing in the same industry follows. Barco Kyan Company Company Data from the current year-end balance sheets Assets Cash $ 22,000 $ 36,000 Accounts receivable, net 36,400 55,400 Merchandise inventory 84,740 132,500 Prepaid expenses 5,600 7,100 Plant assets, net 290,000 304,400 Total assets $438,740 $535,400 Barco Kyan Company Company Data from the current year's income statement Sales $770,000 $909,200 Cost of goods sold 593,100 632,500 Interest expense 7,900 10,000 Income tax expense 14,800 (25, 100 Net income 154,200 241,600 Basic earnings per share 4.54 | 5.12 Cash dividends per share 3.74 4.01 | Beginning-of-year balance sheet data Accounts receivable, net $ 32,800 $ 157,200 Merchandise inventory 61,600 117,400 Total assets 448,000 412,500 Common stock, $5 par value 170,000 236,000 Retained earnings 97,560 36,772 Liabilities and Equity Current liabilities Long-term notes payable Common stock, $5 par value Retained earnings Total liabilities and equity $ 61,340 $ 97,300 82,800 113,000 170,000 236,000 124,600 89,100 $438,740 $535,400 2a. For both companies compute the (a) profit margin ratio, (b) total asset turnover, (c) return on total assets, and (d) return on common stockholders' equity. Assuming that each company's stock can be purchased at $75 per share, compute their (e) price-earnings ratios and (1) dividend yields. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 2b. Identify which company's stock you would recommend as the better investment. Complete this question by entering your answers in the tabs below. 2A Prof Mar Ratio 2A Tot Asset Turn 2A Ret on Tot Assets 2A Ret On Com Stock 2A Price Earn Ratio 2A Div Yield Req 2B For both companies compute the profit margin ratio. (a) Company Choose Numerator: Profit Margin Ratio | Choose Denominator: / Profit margin ratio Profit margin ratio % Barco / = Kyan = % For both companies compute the total asset turnover (b) Total Asset Turnover Company Choose Numerator: | Choose Denominator: Total Asset Turnover 1 Total asset turnover Barco times Kyan 1 = times For both companies compute the return on total assets. Return on Total Assets (c) Company Choose Numerator: | Choose Denominator: Il Return on Total Assets 1 Return on total assets Barco = % Kyan / = = % For both companies compute the return on common stockholders' equity. Return On Common Stockholders' Equity (d) Company Choose Numerator: 1 Choose Denominator Return On Common Stockholders' E / = Return On common stockholders' equi Barco 1 = Kyan / II Assuming that share and each company's stock can be purchased at $75 per share, compute their price-earnings ratios. (e) Company Price-Earnings Ratio | Choose Denominator: Choose Numerator: = Price-Earnings Ratio = Price-earnings ratio / Barco 1 = times Kyan / times Assuming that each company's stock can be purchased at $75 per share, compute their dividend yields. Dividend Yield (f) Company Choose Numerator: Dividend Yield | Choose Denominator: 1 Dividend yield Barco 1 = % Kyan 1 II = % Identify which company's stock you would recommend as the better investment. The better investment